US Company vs Local Employer: Where Should You Work Remotely?

The Income Gap Is Real

The salary difference between US companies and local employers isn’t marginal—it’s life-changing.

A senior engineer in Poland earning $50K locally could make $150K+ for a US company. That’s not a raise—it’s a different economic reality.

How US Companies Hire Internationally

Contractor is most common. You invoice monthly, handle your own taxes, and have no employment protections. You’re a vendor, not an employee.

EOR is growing. Companies like Deel, Remote.com, and Oyster employ you locally on the company’s behalf. You get statutory benefits (health insurance, pension, severance) but pay is typically 10-15% less than contractor rates.

When US Companies Make Sense

Choose a US company when:

1. The salary gap exceeds 50%. Below that, the stability and benefits of local employment may outweigh the income boost.

2. You can handle income volatility. Contractors can be dropped with 2 weeks notice. You need 6+ months of savings as a buffer.

3. Your local job market is weak. If local jobs are scarce or poorly paid, US remote work is a hedge against local economic conditions.

4. Career advancement matters. Working with a US tech company exposes you to higher standards, better tooling, and a stronger professional network.

5. You don’t need visa sponsorship. US companies rarely sponsor visas for remote workers—you need to already have work authorization in your country.

When Local Employment Wins

Choose a local employer when:

1. You need visa/work authorization. Local companies can sponsor visas and handle immigration. US remote employers can’t.

2. Stability is paramount. Having a new baby, a mortgage, or other major commitments? Local employment offers statutory severance, unemployment benefits, and predictable income.

3. The salary gap is under 50%. If a local company pays €70K and a US company offers €90K as contractor, the math favors local after you account for benefits and risk.

4. You want career paths in your country. Building a network with local companies matters if you plan to stay long-term and move into local leadership roles.

5. Tax optimization is complex. Some countries heavily penalize contractor income or have aggressive tax rules for foreign employment. Local employment simplifies this.

The Real Costs of Contractor Life

When comparing offers, adjust for what you lose:

Quick formula: Contractor pay needs to be ~30% higher than equivalent local employment to break even after these costs.

Hybrid Approach: The EOR Compromise

EOR (Employer of Record) gives you the best of both:

Pros:

• US company culture and opportunities
• Local statutory benefits and protections
• Compliant tax withholding
• Employment contract, not contractor agreement

Cons:

• 10-15% less than equivalent contractor pay
• Onboarding takes 2-4 weeks (legal setup)
• Some EORs have poor support/admin
• Benefits are country-minimum, not US-generous

Best for: Risk-averse professionals who want US company exposure without contractor precarity.

Negotiation Strategies by Structure

Negotiating with US companies as contractor:

• Request “loaded rate” that includes PTO budget (add 10-15%)
• Ask for equipment stipend ($2-3K one-time or $100/month)
• Negotiate health insurance stipend ($300-600/month)
• Push for 30-day notice period (protects both sides)
• Request annual rate reviews pegged to inflation

Negotiating with EOR employment:

• You can’t negotiate above their pay bands usually
• But negotiate: extra PTO, signing bonus, equipment budget
• Ask about equity (some EOR structures allow this)
• Clarify severance terms (usually local statutory minimum)

Red Flags When Working for US Companies

Watch for these warning signs:

• Paying below market with promises of future raises. If they can’t pay now, they won’t later.
• Requiring in-country hours rigidly. Legitimate async companies don’t demand 9-5 PST from you in Europe.
• No written contract. Verbal agreements are worthless internationally.
• “We’ll convert you to EOR later.” They often don’t—it costs them more.
• Unclear tax guidance. Legitimate companies help you understand your obligations or use EOR.

The Bottom Line

US companies offer transformational income for workers in most countries. A 2-3x salary isn’t a perk—it’s a fundamental career accelerant that compounds over time through savings, investments, and optionality.

But the contractor trade-off is real. You’re trading stability for income. The right choice depends on your risk tolerance, savings buffer, and life stage.

My recommendation: If you can handle the risk and the gap is 50%+, take the US company role. Build your savings to 12 months of expenses, and the “precarity” becomes theoretical. You’ll have more financial security from savings than any local employer could provide through severance.